Australian banks are significantly more vulnerable to email fraud than their US counterparts, according to recent research from Proofpoint, with many failing to adopt the highest level of security measures.

The analysis indicates that 66% of Australian banks have not implemented the strongest form of Domain-based Message Authentication, Reporting and Conformance (DMARC) protection — a critical tool in preventing cyber criminals from spoofing legitimate bank emails.

The most secure DMARC setting, ‘Reject’, blocks potentially harmful emails before they reach customers’ inboxes.

Despite 75% of Australian banks using some form of DMARC, only 34% apply the ‘Reject’ setting, meaning most do not fully safeguard their customers from phishing attacks.

Furthermore, one-quarter of Australian banks have no DMARC record at all, leaving them highly susceptible to cyber threats.

These findings coincide with the Australian Government’s new Scam Prevention Framework, which imposes fines of up to $50 million on businesses, including banks, that fail to manage scams properly.

The framework also mandates businesses to report scams and provides victims with avenues for compensation.

Proofpoint senior director Steve Moros highlighted the growing risks, saying, “Cyber criminals are increasingly posing as trusted banks to trick Australians into handing over sensitive information… this analysis alone highlights there are still gaps that the banks in Australia can address to prevent Australian consumers from being scammed.”

In comparison, US banks are better protected. 58% enforce the highest DMARC security level and only 3% lack any DMARC record.

Moros added that Australian banks must adopt stronger protections to safeguard customers from domain impersonation and phishing scams.

Proofpoint’s analysis covered 85 banks, including both Australian-owned and foreign subsidiary banks in the country.

The report recommends that banks increase vigilance around email authenticity and promote secure communication practices to mitigate fraud risks.

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